The proposed insured makes the premium payment on a new insurance policy. If the
insured should die, the insurer will pay the death benefit to the beneficiary if the policy is
approved. This is an example of what kind of contract? - ✔️✔️Conditional
What does "level" refer to in level term insurance? - ✔️✔️Face amount
What is the purpose of a free-look period in insurance policies? - ✔️✔️It allows the
insured to reject the policy with a full refund.
Which provision of a life insurance policy states the insurer's duty to pay benefits upon
the death of the insured, and to whom the benefits will be paid? - ✔️✔️Insuring clause
Which of the following best describes annually renewable term insurance? - ✔️✔️It is
level term insurance.
All of the following are examples of third-party ownership of a life insurance policy
EXCEPT - ✔️✔️An insured borrows money from the bank and makes a collateral
assignment of a part of the death benefit to secure the loan.
All of the following are true regarding the guaranteed insurability rider EXCEPT -
✔️✔️This rider is available to all insureds with no additional premium.
An insured purchased a 15-year level term life insurance policy with a face amount of
$100,000. The policy contained an accidental death rider, offering a double indemnity
benefit. The insured was severely injured in an auto accident, and after 10 weeks of
hospitalization, died from the injuries. What amount would his beneficiary receive as a
settlement? - ✔️✔️$200,000
4
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying this summary from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller OliviaWest. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy this summary for $13.49. You're not tied to anything after your purchase.